Smart Global Holdings Inc (SGH)

Debt-to-assets ratio

		Mar 1, 2024	Dec 1, 2023	Aug 25, 2023	May 26, 2023	Feb 24, 2023	Nov 25, 2022	Aug 26, 2022	May 27, 2022	Feb 25, 2022	Nov 26, 2021	Aug 27, 2021	May 28, 2021	Feb 26, 2021	Nov 27, 2020	May 29, 2020	Feb 28, 2020	Nov 29, 2019	Aug 30, 2019	May 31, 2019	Mar 1, 2019
Long-term debt	US$ in thousands	740,663	748,299	754,820	782,258	789,364	796,985	—	485,026	483,911	341,150	340,484	338,047	210,811	197,634	193,547	191,593	177,303	182,450	188,428	194,537
Total assets	US$ in thousands	1,517,450	1,630,860	1,505,960	1,591,190	1,640,080	1,807,660	1,572,060	1,554,050	1,508,510	1,323,700	1,344,800	1,189,060	820,807	784,725	792,300	808,437	782,733	704,137	670,013	776,408
Debt-to-assets ratio		0.49	0.46	0.50	0.49	0.48	0.44	0.00	0.31	0.32	0.26	0.25	0.28	0.26	0.25	0.24	0.24	0.23	0.26	0.28	0.25

March 1, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $740,663K ÷ $1,517,450K
= 0.49

The debt-to-assets ratio of Smart Global Holdings Inc has shown some fluctuation over the past few years, ranging from 0.00 to 0.50. A higher ratio indicates a higher proportion of the company's assets that are financed by debt.

The ratio was notably low at 0.00 on August 26, 2022, which may suggest that the company had either minimal or no debt compared to its total assets at that point in time. This could be due to various reasons, such as paying off debts or a conservative approach to debt management.

On the other hand, the ratio reached its peak at 0.50 on August 25, 2023, indicating that half of the company's assets were financed through debt. This could be a signal of increased leverage which might pose greater financial risk to the company, as higher debt levels can lead to higher interest expenses and potential solvency issues.

Overall, it is important for investors and stakeholders to monitor the debt-to-assets ratio over time to assess the company's leverage and financial health. Fluctuations in this ratio can reveal insights into the company's capital structure and its ability to manage debt efficiently.